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Ryanair Analysis and Strategic Recommendation

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Ryanair Analysis and Strategic Recommendation
Ryanair

Ryanair is one of the largest and still fastest growing low-fares airline companies in Europe. Led by CEO Michael O’Leary, a diverse board of directors, and an experienced top management, Ryanair has been very successful following a cost leadership strategy, partially achieved by a “no-frills” service strategy. External influences such as the European economic crisis, aviation deregulation, and rising oil prices have created opportunities or threats to Ryanair, and internal weaknesses such as unethical behavior have created issues as well. To address this, our team has created two recommendations for strategic change: correct unethical behavior and develop customer loyalty. Little new resources need to be acquired to make these changes; the largest obstacle to achieving them is to persuade the top management and board of directors that this is the correct new direction.

Contents Introduction 3
Company History 3
Founder’s Influence 4
Board of Directors 5
Top Management 6 Environmental Analysis 8
Foundations 8
External Analysis 10
Internal Analysis 13 Strategic Choice 15
Business-level strategy 15
Corporate-level strategy 17
Global expansion strategy 20 Problem Statement and Strategy Formulation 20
Financial Analysis 20
Opportunities 21
Strengths 24
Threats 25
Weaknesses 26
Problem Statement 28
Strategic Change Recommendations 29 Strategy Implementation 31
Organizational Controls Review 31
Current events 33
Future resources 34
Current resources 34 Conclusion 35 Work Cited 38

Introduction
Ryanair has grown exponentially since its emergence in the mid 1980s and has become a leader in the low cost airline industry in the Europe. It is currently now valued at over $10 billion. As of 2011, Ryanair currently had: * 44 European Bases * 263 Boeing 737s * Operated 1,500 flights a day
This company has been successful in continued growth since day one. As stated on the company’s website, their objective is to firmly establish itself as Europe’s


Cited: BBC NEWS. Ryanair to abolish check-in desks. May 2, 2012. http://news.bbc.co.uk/2/hi/business/7903656.stm BBC NEWS “Eurozone has one foot in recession” - Monday, Feb. 20, 2012 | 3:09 a.m. - Las Vegas Sun. (n.d.). Las Vegas Sun. Retrieved February 19, 2012, from http://www.lasvegassun.com/news/2012/feb/20/eu-europe-economy/ Farah Nayeri Finfacts Team. Ryanair Chairman David Bonderman 's Texas Pacific partner in $44bn TXU buyout- largest private equity deal on record. Feb 26, 2007 - 8:59:00 AM. From http://www.finfacts.ie/irishfinancenews/article_10009205.shtml Flightglobal Flightglobal. Ryanair to Charge for Airport Check-in. May 3, 2012. http://www.flightglobal.com/news/articles/ryanair-to-charge-for-airport-check-in-216325/ Gibbons, Kevin Global Travel Industry News. September 05, 2011. From http://www.eturbonews.com/25033/impact-september-11-2001-aviation Greece Flights - Ryanair Travel Guide “How Ryanair’s Innovation Strategy has made it the EU’s Most Hated Airline.” Fluffylinks. January 7, 2012. http://www.fluffylinks.com/ryanair-business-strategy Jess Mun Michael Choi. Ryanair Strategic study. Dec. 22, 2008 http://www.slideshare.net/The_E_group/Ryanair-Study-version-7 "Missouri State University Libraries."Missouri State University Libraries “New Gerona routes from Ryanair.” Easy Voyage. Jan 1, 2012. http://www.easyvoyage.co.uk/news/new-girona-routes-from-ryanair-8047 Niinimaa, Elisa North South News. Ryanair plans ambitious growth strategy. May 3, 2012. http://northsouthnews.com/index.php/travel/203-ryanair-plans-ambitious-growth-strategy O’ Cuilleanain, Eoin S., Gonzague D “Plane problems could ground Ryanair 's expansion." The Guardian. N.p., n.d. Web. 24 Mar. 2012. http://www.guardian.co.uk/business/2009/nov/02/ryanair-expansion-boeing-problems. “Ryanair expansion to create 1,000 jobs." The Independent. N.p., n.d. Web. 24 Mar. 2012. http://www.independent.co.uk/news/business/news/ryanair-expansion-to-create-1000-jobs-6290891.html. Ryanair. Annual Report 2011. May 3, 2012. http://www.ryanair.com/doc/investor/2011/Annual_Report_2011_Final.pdf “Ryanair Full Year Profits Rise 26% To €401m Fares Rise 12% As Traffic Grows 8% To 72m." Ryanair.com Suarez, Rothwell. International Business Strategy Ryanair. May 2, 2012. http://www.actuarisk.be/files/RyanairSite.pdf Suarez, Rothwell
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